Phoenix Implements Construction Limits in Response to Declining Groundwater Levels in Arizona

In the town of Florence in Pinal County, Arizona, aerial views showcase the construction of new homes. This development, however, will no longer rely on groundwater due to a recent decision made by the Arizona Department of Water Resources. Governor Katie Hobbs announced these restrictions, which specifically target groundwater supplies in the Phoenix area. It is important to note that these restrictions will not affect current homeowners who already have a sustainable water source.

The decision to limit new housing construction in the Phoenix suburbs comes as Arizona grapples with a severe drought and diminishing water supplies caused by a megadrought. This prolonged dry period, lasting for the past two decades, is considered the driest in over 1,200 years. The impact of human-caused climate change has exacerbated these conditions, leading to a decline in water sources across the entire western United States. These water shortages are affecting various sectors of the economy, including the construction industry.

Earlier this year, Arizona projected that developers planning to build homes in the desert west of Phoenix do not have sufficient groundwater supplies to support their plans. A more recent analysis indicated that approximately 4.9 million acre-feet of water, which represents about 4% of the area’s demand, would not be available over the next century. To mitigate this, developers in the affected areas will still be able to proceed with construction, but they will need to find alternative water sources. This requirement poses a challenge for developers seeking to build homes in rapidly growing areas like Phoenix during a nationwide housing shortage.

Arizona developers have expressed confidence in their ability to adapt to dwindling water supplies by implementing various technologies such as low flow fixtures, drip irrigation, and desert landscaping. Additionally, the state’s restriction on groundwater usage may incentivize developers to explore alternative options, such as purchasing access to river water from farmers.

Governor Hobbs reassured Arizonans that despite the restriction, the state is not running out of water and is well-prepared to manage the situation. She emphasized the importance of addressing water challenges with integrity and transparency.

The announcement coincides with Arizona’s ongoing struggle with disappearing groundwater and declining levels from the drought-stricken Colorado River, which serves as a water source for over 40 million people in the United States. Arizona currently receives about 2.8 million acre-feet, accounting for approximately 18% of the total allocation, from the Colorado River annually.

Last month, Arizona reached an agreement with California and Nevada to voluntarily reduce water usage from the Colorado River in exchange for federal funding. Over the past two years, Arizona has already faced two rounds of mandatory water cuts from the river.

It is important to note that a correction needs to be made regarding the timing of the analysis. The more recent analysis revealed that nearly 4.9 million acre-feet, representing roughly 4% of the area’s demand for groundwater, will not be met over the next 100 years.

In summary, Arizona’s decision to restrict new housing construction in the Phoenix area dependent on groundwater reflects the state’s efforts to address the ongoing drought and diminishing water supplies. Developers will need to find alternative water sources to continue construction in these affected areas. Arizona remains confident in its ability to manage the water situation despite the challenges posed by groundwater depletion and declining levels in the Colorado River.

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